HJ Sims Underwrites $40.5 Million Refinancing for an Affiliate of Volunteers of America


APRIL 10, 2017

CONTACT: Tara Perkins, PR & Marketing Specialist | 203-418-9049 | mailto:tperkins@nullhjsims.com

HJ Sims Underwrites $40.5 Million Refinancing for an Affiliate of Volunteers of America

FAIRFIELD, CT– HJ Sims, a privately held investment bank and wealth management firm founded in 1935 and celebrating more than 80 years of service, is pleased to announce the successful underwriting and refinancing in the amount of $40,595,000 in February 2017 for The Homestead at Anoka, a not-for-profit Corporation organized in 2010 for the development, construction and operation of a senior living campus, located in Anoka, MN. The corporation is a subordinate affiliate of Volunteers of America National Services, a Minnesota nonprofit corporation.

Sims was engaged by Homestead at Anoka to advance refund its Series 2011 Bonds, which were originally issued to finance Phase 1 of the community. To meet Anoka’s strategic financing objectives, Sims recommended moving forward with long-term, fixed-rate tax-exempt bonds with no extension of the original final maturity. The issue was originally scheduled to come to market in late fall of 2016, but market conditions changed quickly after the 2016 Presidential election resulting in net present value of savings falling below target minimums. Sims diligently monitored the market until interest rates decreased sufficiently to where the client’s goal of 5% present value of savings could be achieved. To help achieve a higher return on investment of the escrow securities and improve present value of savings, the 2011 bonds were escrowed using Open Market Securities rather than the traditional use of State and Local Government Securities (SLGS). To increase day’s cash on hand and realize savings, Sims structured the issue by front-end loading the savings in the early years of the new issue.

HJ Sims worked with Homestead at Anoka to achieve a Present of Savings of 5% or greater and to realize debt service savings in early years. Sims successfully priced the $40,595,000 issue with a True-Interest-Cost of 5.171%. On a present value basis, the refunding saved The Homestead at Anoka $1,726,225.77, or 5.04% of the par amount of the refunded bonds. The Homestead at Anoka is able to realize almost all the debt service savings in the first two years, successfully meeting its objective to increase liquidity.

“HJ Sims is pleased to have provided a Financed Right® solution that enabled The Homestead at Anoka to realize savings that will help the organization to meet its strategic objective,” explains Mark Landreville, Executive Vice President, HJ Sims.

For more about HJ Sims and how we can offer you Financed Right® solutions, please contact Mark Landreville at mailto:mlandreville@nullhjsims.com| 952-683-7509 or Christina Rappl at mailto:crappl@nullhjsims.com.

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is celebrating more than 80 years of service as a privately held investment bank and broker-dealer with $2.2 billion of assets under management. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $22 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with investment banking, private client wealth management and trading offices in Maryland, Massachusetts, Florida, Minnesota, New Jersey, Pennsylvania, Texas and Puerto Rico. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. HJ Sims is not affiliated with The Homestead at Anoka or Volunteers of America. For more information, please visit: www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, Twitter and LinkedIn.


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